Following up on Paper #2, I will be utilizing the information I gathered to discuss Pfizer’s new organizational structure. In 2012, Pfizer began the process of drastically reducing its size to focus more on the company’s R&D business unit. In 2012, the company sold its Nutrition business. In 2013, the company spunoff Zoetis. Most recently, the company announced an organizational restructuring that involved splitting itself up into three different operational units: Two Innovative business segments and one Value business segment. The first Innovative business segment will focus on products that retain patent protection past 2015. The second Innovative business segment will consist of Vaccines, Oncology, and Consumer Healthcare. Lastly, the Value business segment will focus on products that lose exclusivity before 2015 and provide strong consistent cash flow.
My use of Pfizer as an example of organizational restructuring will help provide concrete evidence that rising R&D costs are causing organizations to restructure. The following sources that I will use are below:
Pfizer: Dearth of New Products and Future Challenges